High Leverage Forex Brokers

Do you know what attracts forex traders to Forex trading other than the potential profits? The fact that you do not need to invest more than your existing capital to trade in larger sizes; for example, you can trade 100,000 units of currency with only 1,000 units of equity.

How? With the help of Leverage. Leverage is like a "loan" from your broker. Of course, you know how a loan works! You need to return the borrowed amount in full. The higher the leverage, the higher your potential profits, and the higher your potential risks.

How does high leverage work?

To use leverage, you must have a Margin, i.e., a certain amount of money available in your account. Margin works as a security deposit and its amount varies depending on the leveraged amount. You can read more about the margin rate on your Forex broker’s website.

Using leverage in your trading can have two possible outcomes:

That is why you need to plan and conduct your trades carefully especially when you are using high leverage, otherwise, your Margin will be used to cover your losses.

Advantages and Disadvantages of Trading with High Leverage

High leverage is not always beneficial and at times it can be dangerous. That is why you should know the advantages and disadvantages of trading with high leverage before even attempting to use it.

✅ Increase Liquidity
With the help of leverage, you will have more funds to trade for more profits; in other words, it allows you to accomplish much more than what you normally could with your capital.

✅ Improve Capital Efficiency and Management
Using a high leverage can reduce the time it takes for you to earn profits. Therefore, you can reinvest your funds more frequently and gain a higher return in a significantly shorter period.

✅ Reduce the Effects of Low Volatility
Traders can also use high leverage to counter the effects of low volatility. In a market with low volatility, high leverage allows you to make higher profits from fewer transactions.

❌ Increase Risk of Loss
Leverage also exposes you to higher risks. When you cannot use leverage properly, you may lose more than what you expected, or even clear out your account!

❌ Possibility of Margin Call
There is no guarantee that you will always meet your broker's margin requirements. When you go below this percentage, your broker will issue a margin call, so you may be forced to sell some or all of your positions to cover your loans. Imagine having to close profitable positions early because of a margin call!

Tips to Use High Leverage Properly in Trading

Trading via normal leverage is not as simple as it seems, let alone using high leverage. To maximize your potential profits in trading, you have to use high leverage properly. There is no blueprint on how to do it, but these tips may keep you on the right track:

1. Choose the Right Leverage for You

Do not take high leverage very lightly. First, analyze your trading objectives and choose the best leverage amount.

Are you a beginner or a professional? Are you aware of your trading style and risk appetite? Think carefully about why you need high leverage. Some Forex brokers also provide a margin calculator to help you calculate your leverage and margin. With that in mind, only proceed with high leverage when you are sure about it.

2. Always Plan and Execute carefully

While it is impossible to always win and not make any mistakes, you can at least minimize the risks by planning and executing your trades with utmost care.

It is also important to know when to use high leverage. Using high leverage may be a good strategy when trading on a smaller account. It gives you the flexibility to open positions without putting your account balance in danger during volatile periods.

3. Make Sure to Take other Protective Measures

How? By ensuring your trading account has negative balance protection. As the name suggests, it will protect you from a negative account balance. Using this feature, even if your trades result in a negative balance, the negative amount you owe will be dissolved and your balance will be reset to zero.

Best Brokers That Offer High Leverage

High leverage is generally offered between 1:400 and 1:1000 or higher. However, some Forex brokers offer higher leverage up to 1:3000, or even 1: Unlimited. Using the abovementioned tips, you can cautiously plan your trades with the help of high leverage. However, since higher leverage brings about bigger amounts and bigger risks, you need to pay even more attention when you are choosing your Forex broker.

Here are several regulated Forex brokers that offer high leverage as well as negative balance protection:

RoboForex

At RoboForex, you can safely conduct transactions in 8 asset classes, namely Forex, stocks, indices, ETFs, commodities, metals, energy commodities, and cryptocurrencies.

If you have decided to use this broker’s services, you can choose one of the following accounts: the Prime and R StocksTrader accounts with a maximum leverage of 1:300, the ECN account with a maximum leverage of 1:500, as well as the ProCent and Pro accounts with a maximum leverage of 1:2000.

Max Leverage: 1:2000
Account types: Standard, Cent, ECN, Pro, Prime
Spread Types: Fixed & Floating
Markets available: Forex, stocks, indices, ETFs, soft commodities, energies, metals, cryptocurrencies

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, PerfectMoney, Cryptos, Local funding options

Regulations: IFSC, CySEC
Country: Cyprus
Founded: 2009

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XM offers over 1000 trading instruments, such as Forex, CFDs on crypto, indices, commodities, stocks, metals, and energies.

All account types (Micro, Standard, and XM Ultra Low) at XM come with leverage up to 1:1000, except for Shares Account which has no leverage option. The leverage amount varies depending on your equity; for more information, please visit the broker’s website.

Max Leverage: 1:1000
Account types: Micro, Standard, Ultra Low, Shares
Spread Types: Floating
Markets available: Forex, CFDs on shares, Futures, Indices, Metals, Energies, and Cryptocurrencies

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, Bitcoin, PerfectMoney, Local bank in Bangladesh

Regulations: CySEC, ASIC, IFSC, DFSA
Country: Cyprus
Founded: 2009

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FBS

FBS is one of the top brokers that offer the highest leverage on the market, up to 1:3000, with which you can trade in Forex, metals, indices, energies, stocks, and cryptos. FBS offers 6 account types with different leverage amounts. The Cent account comes with leverage up to 1:1000, whereas the leverage amount in the Micro, Standard, and Zero Spread accounts is up to 1:3000. The Leverage amounts for the ECN and Crypto accounts are up to 1:500 and 1:5, respectively.

Max Leverage: 1:3000
Account types: Micro, Cent, Standard, ECN, Zero Spread
Spread Types: Fixed & Floating
Markets available: Forex, Metals, Ennergies, Stocks, Cryptos

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, Bitcoin, PerfectMoney, Local bank in Bangladesh

Regulations: CySEC, ASIC, IFSC
Country: Cyprus
Founded: 2009

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Exness

Exness Forex broker offers the maximum leverage of 1: unlimited, depending on your equity. Traders can open a Standard (Standard and Standard Cent) or Professional (Raw Spread, Zero, and Pro) account at Exness to start trading in Forex, metals, cryptocurrencies, energies, stocks, and indices. To use the unlimited leverage, you need to meet certain conditions, to read about the required conditions please visit the broker’s website.

Max Leverage: 1:Unlimited
Account types: Standard, Cent, Plus, Zero, Pro, Raw
Spread Types: Floating
Markets available: Forex, Metals, Energies, Stocks, Indices, Cryptos

Payment methods: Bank wire, Credit Cards, Skrill, Neteller, PerfectMoney, Cryptocurrencies

Regulations: CySEC, FCA, FSA
Country: Cyprus
Founded: 2008

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